New ID Theft Law To Take Effect

New ID Theft Law To Take Effect

Maryland Attorney General Doug Gansler talks about this new ID theft law. Download This File

A Maryland law enabling parents to better protect their children from identity theft is among several taking effect next week.

The child identity theft law, which is the first of its kind in the nation, will allow parents to freeze their child's credit any time. Credit agencies have been required to place a security freeze on the credit of anyone who requests it. But they have been able to refuse to lock the credit of those who do not have a pre-existing credit report. That has presented problems for children, because if they have a credit report they likely already are a victim of fraud.

Delegate Craig Zucker, a Montgomery County Democrat who sponsored the bill this year, noted that it also will benefit elderly and developmentally disabled residents who could become victims of identity theft.

Identity theft can be a big problem for children, because they usually don't learn they are victims until they are older, when they apply for a credit card or a loan.

The law will apply to a person younger than 16 at the time of a request. It also will apply to an incapacitated person who has a legal guardian.

A consumer reporting agency would be required to place a security freeze after receiving the request.

Parents will have to opt in to trigger the credit freeze. A consumer reporting agency will be required to place a security freeze after receiving the request. Parents or guardians will have to contact a credit agency and provide proof of identification for the person they want to protect, such as a Social Security number or birth certificate.